US team arrives in India as headway made towards finalising interim trade deal

The United States and India are making progress toward finalizing an interim trade agreement, with Assistant US Trade Representative Brendan Lynch visiting New Delhi. US Ambassador to India Sergio Gor expressed optimism about the ongoing efforts, stating that the discussions are guided by the vision of President Trump and Prime Minister Modi to enhance bilateral trade and investment. Lynch and his team are in India to continue the work on the deal, which is seen as a step toward deepening economic ties between the two countries.

This development comes as the US announced a proposal for new tariffs on goods from approximately 60 countries, including India. The US Trade Representative (USTR) cited investigations revealing that goods imported from these nations are produced using forced labor. The proposed tariffs include an additional 10% duty for economies that already have some form of forced labor import prohibition or have committed to such measures, and a 12.5% additional duty for others. The USTR has listed 54 economies, including India, that it claims have failed to effectively prohibit the importation of goods produced with forced labor.

Indian negotiators are reportedly focused on securing preferential market access for their goods against competitors during these talks. In response to the USTR's notice, the Indian government stated it remains engaged with the US. Stakeholders have until June 22, 2026, to submit requests for public hearings, with written comments due by July 6, 2026. The USTR will consider all feedback before making a final decision. India is also concurrently working with the US to finalize a broader framework agreement, as announced earlier this year.

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Always great to see Assistant @USTradeRep Brendan Lynch! Brendan and his team are in town to continue finalizing the interim trade deal. Our efforts are guided by President Trump and Prime Minister Modi's vision of enhancing trade and investment between our countries. Progress is being made!